IHC acquires freehold commercial property in Melbourne for S$51.8m

Marks first foray into Australia.

Integrated healthcare services and facilities provider International Healthway Corporation Limited (IHC) announced that it has has signed a Contract of Sale for the acquisition of a property located at 553 St Kilda Road in Melbourne, Australia, for A$45.0 million (equivalent to approximately S$51.8 million).

The acquired property at 553 St Kilda Road is a seven-storey office building with a 183 space basement carpark. Located on a site area of 3,044 sqm, it has a net leasable area of 10,170 sqm and is currently fully occupied.

With this acquisition, which marks IHC’s maiden entry into Australia, IHC’s portfolio of properties is now geographically diversified across Malaysia, the People's Republic of China (PRC), Japan as well as Australia.

Dr. Jong Hee Sen, Executive Chairman and Group President of IHC, said: "Diversifying into attractive and large economies in the Asia-Pacific region such as Australia, has been a key growth strategy since our listing in July 2013. IHC continually sources for attractive opportunities to expand our involvement in medical real estate, healthcare-related assets, integrated mixed-use developments, as well as healthcare services, to increase future income and enjoy capital growth prospects. With Victoria being one of the most populous states in Australia, we are pleased to begin our expansion into Australia in this vibrant state.”

Added Dr Jong Hee Sen, Executive Chairman and Group President of IHC: “In line with IHC’s business of providing both integrated healthcare services and facilities, IHC plans to reposition the property over the next few years. With the rising healthcare demands of the ageing population in Australia, 553 St Kilda Road will complement and create synergies to the existing medical services provided in the surrounding vicinity.” The property is located next to the 688-bed Alfred Hospital.

The acquisition is timely according to IHC as the median age of Australia’s population is expected to increase from 36.8 years in 2007 to 45.2 years in 2056.

"Hence, the concern for ageing population is expected to become increasingly significant. Experts believe that the key to addressing the issue of Australia’s ageing population is to provide adequate medical services and facilities for all Australians."